Your Virtual Credit Manager

FEBRUARY 13, 2024

Clearly, the level of Business Credit Risk is going to remain elevated as we move through 2024, bringing with it the potential for corresponding increases in bad debt and delinquency. Start with your largest customers along with those you know are at risk. For more on credit evaluations, check out this post.

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Bankruptcy Credit and Collections Bad Debt Accounts Receivable (AR) 130

Your Virtual Credit Manager

JUNE 18, 2024

That’s why it is standard to ask on a credit applications the year in which the business was formed. Years in business is a critical factor in the assessment of credit risk along with number of employees, which can be a good proxy for sales volume, something private businesses are not always willing to disclose.

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Bad Debt Credit and Collections Credit Risk Credit Card Companies 100

Your Virtual Credit Manager

JULY 18, 2023

Photo by Campaign Creators on Unsplash Commerce between companies is facilitated by a trade credit relationship. When a supplier or vendor grants open credit terms to their business customers, both parties benefit. It’s important to keep in mind Pareto’s theorem when you are approving credit.

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Credit and Collections Credit Scoring Credit Management Credit Application 130

Emagia

MARCH 15, 2024

Managing credit risk for B2B customers is critical for seamless order to cash (OTC) and working capital cycles. Businesses that follow traditional reactive strategies in OTC processes may find it difficult to collect at-risk future invoices, likely leading to large invoices going delinquent.

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Credit Risk Default Credit Management Credit and Collections 52

Emagia

MARCH 15, 2024

Managing credit risk for B2B customers is critical for seamless order to cash (OTC) and working capital cycles. Businesses that follow traditional reactive strategies in OTC processes may find it difficult to collect at-risk future invoices, likely leading to large invoices going delinquent.

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Credit Risk Default Credit Management Credit and Collections 52

Your Virtual Credit Manager

FEBRUARY 6, 2024

As a small business owner or executive, managing accounts receivable (AR) and navigating through various credit decisions is an integral part of the job. After all, credit and collections is essential to the performance of your order-to-cash (O2C) process and cash conversion cycle.

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Credit and Collections Accounts Receivable (AR) Bad Debt Credit Risk 130

Emagia

JUNE 12, 2023

Credit risk management plays a critical role in the financial health and stability of businesses across industries. It involves identifying, assessing, and mitigating the potential risks associated with extending credit to customers or counterparties. What is Credit Risk Management?

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Credit Risk Credit and Collections Bad Debt Default 52

Gaviti

DECEMBER 18, 2024

Deliver customizable reports to different finance personas, based on different timelines, customer risk, or payment history. Different types of reports include an accounts receivable aging report, customer balance reports, collections performance reports, and cash flow forecasting reports. Customer payment history. A/R performance.

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Collection Effectiveness Index DSO Credit and Collections Invoice to Cash 52

Your Virtual Credit Manager

DECEMBER 6, 2022

If your sales are consummated via payment at the point of sale, which may involve “pay with order” or “pay on delivery” protocols involving a credit card or an online e-payment product, managing Accounts Receivable (AR) will not be big issue for you. it just might help them pay you sooner!

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DSO Credit and Collections Bad Debt AR Aging 130

Gaviti

OCTOBER 23, 2023

One possibility is by running a business credit score and report on new customers. What is a Business Credit Score and Report? A business credit score is a rating whose goal is to demonstrate how financially responsible a business is as well as its potential for profitability.

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Credit Scoring Credit and Collections Credit Application Bankruptcy 97

Your Virtual Credit Manager

JANUARY 3, 2023

Over time, AR Ledgers unfortunately tend to collect “Clutter.” Clutter can also cause new orders to be placed on a credit hold when it otherwise would have been automatically released. Share How to Clean Up Your AR Ledger Launch a collection program to collect all past due invoices at least 15 days late.

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Emagia

JUNE 21, 2024

With the rapid advancement of digital technology, businesses can no longer afford the inefficiencies of slow credit applications, validations, and approvals. Empowering the credit team with intelligent Order-to-Cash (OTC) digital solutions is essential. Conducting reference checks online instead of through paper applications.

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B2B Credit Credit Application Digital Credit Application Credit and Collections 40

Due

JANUARY 3, 2023

You might get asked similar questions by lenders when you apply for loans and credit cards. To find out, they might check your credit report. What are credit reports, why are they important and what is in them? What is a Credit Report and Why is it Important? Credit Reports vs. Credit Scores.

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Credit Scoring Credit and Collections Bankruptcy Credit Reporting Agencies 119

CreditStrong for Business

NOVEMBER 7, 2024

Prospective homebuyers seeking a mortgage loan may use several strategies for improving low credit scores. Examples include reviewing credit bureau reports for possible credit account errors, avoiding late payments, paying down debt, and getting a credit builder loan.

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Credit Scoring Credit and Collections Credit Reporting Agencies Credit Card Companies 40

RMAi Blog

APRIL 13, 2023

Credit cards and debit cards can be confusing. Credit cards allow you to use other people’s money while debit cards only let you spend your own money. How a Credit Card Works: Before you can get a credit card, you will have to complete a credit application. They look the same but behave differently.

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Credit and Collections Credit Unions Deductions Credit Application 130

Gaviti

JUNE 25, 2024

Why Is Forecasting Accounts Receivable Collections Important? Forecasting Accounts Receivable Collections Using DSO The easiest and most accurate way to forecast your accounts receivable is using days sales outstanding (DSO). Credit Management and Monitoring. Cash flow is essential for business. Disputes and Deductions.

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Days Sales Outstanding DSO Credit and Collections Deductions 52

Gaviti

JULY 18, 2024

Additionally, it allows accountants to ascertain whether they need to adjust credit strategies. Gathering data over longer periods may require cross-collaboration with teams and even manual data collection. Make better credit decisions, lower DSO, and reconcile payments with near perfection. Credit Management and Monitoring.

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Cash Forecasting DSO Credit and Collections Deductions 95

Gaviti

AUGUST 27, 2024

Make better credit decisions, lower DSO, and reconcile payments with near perfection. Offer customers a variety of payment methods directly through the online payment portal , including credit and debit cards, ACH, electronic payments, and more. Credit monitoring and management. Collections Analytics.

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DSO Credit and Collections Deductions Payment Portals 92

Gaviti

APRIL 24, 2024

With the right dunning process in place, your A/R team can significantly minimize the need for collection calls. The right approach should be based on a number of factors, such as the type of industry, size of the client, customer risk, payment history, and length and history of the customer relationship. Be proactive.

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Credit and Collections Invoice Collections Invoice to Cash Invoice Disputes 52

tillful

FEBRUARY 28, 2023

Like most business credit scores, the SBSS helps lenders and service providers understand the level of credit risk that businesses present. However, unlike most, FICO pulls financial data from the other major credit bureaus—collecting both personal and business credit history data under their business credit score.

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Credit Scoring Credit and Collections Small Businesses Bankruptcy 98

TreviPay

AUGUST 8, 2023

Credit is a powerful and useful tool, but it should be handled with care… Whether it’s for purchases, mortgages, loan approvals, or B2B financing, many organizations need to create a clear and effective credit decisioning process. What is credit decisioning? What factors play a role in credit decisioning?

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Credit and Collections Credit Risk Credit Card Companies Credit Application 52

Abrigo

MAY 30, 2023

Timelines for small business loan data collection and reporting Deadlines for complying with the new CFPB section 1071 rule requirements for financial institutions to collect data on small business loan activities. Takeaway 3 The earliest deadline requires financial institutions to begin collecting data Oct.

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Credit Unions Credit and Collections Transactions Small Businesses 78

Credit Management Group UK

JULY 19, 2023

Small businesses need to ensure they have the most effective credit management systems and skills to tackle late payment seriously, to avoid becoming one of those statistics. Yet many companies take a ‘sledge hammer’ approach to collecting payment from their customers. Credit management should be ‘customer focused’.

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Credit Management Bad Debt Credit and Collections Credit Application 50

Credit Management Group UK

AUGUST 7, 2024

It is a wide spread misconception that credit management is solely based around the collection of overdue invoices, when in fact the scope of effective credit management encompasses the entire process from order to payment. Credit Agency Status Report – This is not to be used on its own but amongst other techniques.

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Order to Cash Credit and Collections Credit Management Credit Application 69

Emagia

FEBRUARY 2, 2024

OTC, the main cash flow driver, has many subsets within it, and credit management is more important than it looks on the surface. The top line and bottom line will be positively impacted when a sales order is received and fulfilled, but your business is at risk till you collect cash against the invoice.

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B2B Credit Credit and Collections Credit Application Credit Management 52

Emagia

NOVEMBER 10, 2023

As NACM Connect ’s Great Lakes Conference closed the final in its trio of fall conferences in Ohio this week, experts from law practices like Lowenstein Sandler LLP and credit report giant Experian warned that corporate bankruptcy numbers are trending worse than any time since the pandemic began about 3 ½ years ago.

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Bankruptcy B2B Credit Credit and Collections Credit Application 52

CreditStrong for Business

OCTOBER 11, 2024

The goal of the organization is to serve the business lending industry by providing accurate and reliable data to help lenders predict small business credit risk. Business credit reports that contain data from the SBFE might make or break your future business credit applications. No SBFE credit reports.

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Credit Reporting Agencies Credit Scoring Credit and Collections Small Businesses 52

Gaviti

APRIL 18, 2024

As an assessment and diagnostic tool, it’s hard to overstate the importance of your company’s accounts receivable (AR) collections aging report. This report is a valuable tactic to stay on top of cash flow and improve short-term collections forecasting. Cash flow problems usually relate to collection policies or customer behavior.

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AR Aging Credit and Collections Bad Debt Allowance for Doubtful Accounts 52

tillful

JANUARY 11, 2023

A business credit score is similar to your personal credit score in that it serves as a key indicator of your business’s financial health and reliability as a borrower to repay. Why is your business credit score a deciding factor for so many different financial transactions?

Credit Scoring 52

Credit Scoring Credit Reporting Agencies Credit and Collections Small Businesses 52

Gaviti

FEBRUARY 18, 2024

If late invoice payments cause you to miss loan repayments, it can impact your credit, and, if it continues, can land you in court. Employees who aren’t paid on time will find work elsewhere, making it hard to fulfill future customer requests, and send and collect invoices. These include: Lack of a unified process.

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Credit and Collections Deductions Collector Payment Portals 52

Gaviti

FEBRUARY 18, 2024

If late invoice payments cause you to miss loan repayments, it can impact your credit, and, if it continues, can land you in court. Employees who aren’t paid on time will find work elsewhere, making it hard to fulfill future customer requests, and send and collect invoices. These include: Lack of a unified process.

Credit and Collections 52

Credit and Collections Deductions Collector Payment Portals 52

Emagia

MAY 1, 2024

. “The time has come to take advantage of it in terms of how we do things and how we might be able to do things better,” says David Schmidt, Managing Director at A2 Resources and former longtime contributor with Credit Today. Collections, payment, and invoicing software can reduce the time for preparation and follow-up.

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Order to Cash Cash Forecasting Credit and Collections Shared Service Center 52

Gaviti

APRIL 3, 2024

Understanding Days Sales Outstanding Days Sales Outstanding, or DSO , is the average number of days it takes a company to collect revenue from an invoice. Accounting operations managers use DSO to calculate the general ability of a company to collect invoices on time for a specific period (e.g. Automate the collections process.

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DSO Days Sales Outstanding Credit and Collections Collection Effectiveness Index 52

Gaviti

OCTOBER 10, 2024

For example, autonomous A/R software automates the generation of recurring invoices and remittance, allowing finance teams to focus on collecting invoices from customers that can best optimize and accelerate their company’s cash flow. Automating manual tasks eliminates human error while allowing staff to focus on higher-value tasks.

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Invoice to Cash Credit and Collections Payment Portals DSO 52

TreviPay

MARCH 16, 2023

The trade credit proposition Both brands realized they would need to offer trade credit to make their products an attractive proposition to cycle stores. Neither had sufficient cash flow to underwrite the required credit to bring on more stores. The retailers have been granted an average credit line of $32,000.

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Credit and Collections Invoice Disputes Credit Application Credit Risk 52

Gaviti

JUNE 13, 2024

This makes the process cumbersome, prone to human errors and challenging when collaboration is necessary between different collections agents, A/R roles or departments within your business. An accounts receivable workflow is the step-by-step process taken to record and collect the debt.

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DSO Credit and Collections Deductions Collector 40

Gaviti

NOVEMBER 16, 2023

The method you choose will depend on a range of factors, including how you define a delinquent account, the level of delinquency, how it impacts your organization, and whether or not it affects your company’s credit report. It extends the time period until a receivable is collected, increasing the risk of negative cash flow.

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Credit and Collections Bad Debt Invoice to Cash Debt Collections 52